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Price leader

Updated: Aug 20, 2021

A firm whose price changes tend to be followed by other sellers in its markets. This may be by agreement, which is illegal under monopoly legislation in many countries, or by collusion, which is considered anticompetitive but is difficult to prevent. A price leader may be a particularly large firm, or one with particularly aggressive management.

Reference: Oxford Press Dictonary of Economics, 5th edt.

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James Knight
Editor of Education
James is a lead content editor for Invezz. He's an avid trader and golfer, who spends an inordinate amount of time watching Leicester City and the… read more.